Oregon 30-Hour Real Estate Law Practice Test

What type of contract exists between Sylvia and Marge given Sylvia's age?

1. Valid

2. Void

3. Voidable

4. Legally binding

The correct answer is: Voidable

The contract between Sylvia and Marge is considered voidable primarily due to Sylvia's age. In many jurisdictions, minors—typically individuals under the age of 18—do not have the legal capacity to enter into binding contracts. This means that while Sylvia may have the ability to enter a contract, she also has the right to cancel or void the agreement if she chooses. The concept of a voidable contract is essential in protecting minors from entering into obligations that they may not fully comprehend or may later regret, allowing them the option to affirm or reject the agreement upon reaching the age of majority. Therefore, since Sylvia is a minor, the contract can be annulled at her discretion, making it voidable. Additionally, a valid contract is one that meets all legal requirements, which is not applicable in this scenario since Sylvia lacks the capacity to consent legally. A void contract signifies something that is not recognized by law and is treated as if it never existed, which does not apply here because the contract is still enforceable until Sylvia chooses to void it. The term legally binding may suggest that the contract is enforceable against both parties, which is inaccurate in this case since Sylvia can choose to reject it.